How to Choose a Bookkeeping Software

Do you require assistance in selecting the accounting software that will serve your company in the most effective manner? On our blog, we provide advice on how to select the accounting software that will best meet your needs. This article will discuss how to conduct a needs analysis, the various categories of accounting software that are available, and will even include some reviews of specific applications! Before you make an investment in this vital part of your company, it would be wise to familiarise yourself with some useful recommendations. Please get in touch with us as soon as possible if you have any inquiries or if you would like additional information regarding our services.

Finding the right software for your accounting needs can be challenging. There is a wide variety of choices available, each of which comes with its own set of advantages and disadvantages. It is essential to locate one that satisfies the requirements of your company without breaking the bank. This article will guide you through the process of selecting the accounting software that will work best for you.

Are you seeking for a software to help you keep your books? Do you want to find out how to choose which one is best for your company? This blog post will provide you with all of the information that you require about why and where you should obtain assistance with your books, and it will also include recommendations regarding the type of software that is most suited for various types of organisations.

This blog post covers everything you need to know to get started with your small business, including how to choose the best bookkeeping software and when it's time to bring in an accountant or financial adviser. You are also provided with information regarding the amount of money that could be saved by employing the services of a professional rather than completing the task yourself. This allows you to determine whether or not it would be beneficial to hire someone to complete the task.

After reading this blog post, you will have a better understanding of the most common aspects of accounting systems, as well as the ways in which these systems differ from one another. This will allow you to make an educated choice regarding the accounting solution that is best suited for your company.

Which Bookkeeping Software Is Best For Small Businesses?

Accounting software is beneficial to owners of small businesses because it assists them in monitoring their accounts receivable and accounts payable, provides them with a transparent view of their profitability, and helps them get ready for tax season. In the realm of accounting software, a small business is one that is able to make use of "out-of-the-box" software without the need for major adaptations. It is common for a growing company to require a bespoke enterprise resource planning (ERP) system to accommodate its increasingly intricate accounting needs as the company expands.

Small businesses have access to a diverse selection of accounting software options, each of which comes with a unique set of features and a unique price point. A small business owner can begin the process of selecting the suitable accounting software by considering two factors: the sort of business they run and the number of employees they have. For instance, a person who works as a freelancer would not have the same requirements for the accounting software as someone who owns a restaurant.

You (quite literally) cannot afford to lose track of the cash associated with your company. You are in luck because there are many different accounting software alternatives that can assist you in organising your spending, billing your customers, and keeping an eye on your bottom line. Finding accounting software that provides all of the features you require at a price that is within your budget can be a challenge.

It's easy to be overwhelmed by the sheer number of choices when it comes to accounting software; however, you shouldn't worry about this.

Accounting software is one of the first business tools that a new company needs to invest in when it is initially getting started. Because you'll be using it on a daily basis to keep tabs on the money coming into and leaving out of your company, making sure you pick the proper one is crucial. You'll be able to use it to generate invoices, record incoming and outgoing payments, track overdue receivables and take appropriate action on them, as well as run reports that assist you in analysing your financial health and the many facets of your organisation.

The fact that there are hundreds of different accounting software programmes available for purchase makes it difficult to choose the right one. When we were looking for the best accounting software options, we focused on finding low-cost and user-friendly accounting packages that were developed specifically for small businesses. We wanted them to be hosted in the cloud and come with a mobile app, so that you could access your data whenever you want and from wherever you are.

We searched for accounting software that included time-saving features such as automated bank feeds, automatic payment reminders, and online invoicing and payment acceptance capabilities. Because it is essential to the process of monitoring and gaining a knowledge of your company's financial situation, we looked for software that included extensive, fully customisable, real-time financial reporting.

The Very Best Accounting Software for Companies of Any Size in 2021

It is helpful to have a list of software, but how can you choose which one is best suited for your company? When looking for accounting software or bookkeeping software, there are a few things you should bear in mind, and here they are.

• Identify your needs. Do you require a platform that gives you the ability to track inventories, or is the tracking of receipts and sales tax a more direct concern for you? Please establish a list of your accounting demands and rank them in order of importance, starting with the requirements that are the least important. Before you begin looking into potential solutions, you and your team should come to an agreement on the minimum amount of requirements that your chosen software should fulfil. You have some leeway in this regard; but, it is simple to become sidetracked by the bells and whistles of a solution that addresses 18 requirements that you do not possess.
• Be honest about your budget. Determine how much money you have available to go towards the purchase of accounting or bookkeeping software before you move on to the research portion of the process. After you have determined how much money you have available for the project, you should make every effort to avoid spending an excessive amount of time assessing software that is outside your financial means. It is common for budgets to have some wiggle room, but you should make it a rule that you won't move forwards with a solution if it will put you more than 25% over your allotted budget.
• Research for features that meet your needs. It's easy to get carried away with the characteristics of something. If, on the other hand, you only do business in Australia and you choose software that specialises in providing accounting services for worldwide teams, you run the risk of paying for a lot of features that you do not require but that the software offers nevertheless.
• Don’t get distracted. You should examine only the software that satisfies the bulk of your requirements by going back through your list of demands and ranking them in order of importance.

Choose Some Accounting Software For Your Company

One of the primary reasons why some firms are unable to succeed is because they do not have an effective method of bookkeeping. You will have sufficient warning in the event that it appears as though your company may be running out of funds if you manage your books in the appropriate manner.

The keeping of your books might be done in:

• accounting books (manually)
• spreadsheets
• accounting software.

If you don't want to become familiar with bookkeeping procedures, the most time- and labor-efficient option is to use accounting software.

Think About Your Company's Needs

There will be a wide variety of requirements placed on accounting software by various types of firms. Consider the following questions while deciding which accounting software to purchase:

• Does the system calculate all payroll requirements (such things as pay as you go withholding, yearly leave, and long service leave are examples)?
• Does the system keep track of inventories, work that's already been done, orders, jobs, and other requirements for task management?
• Will there be a limit on the number of bank accounts that can be managed by the system?
• Is it necessary for the system to deal with different currencies?
• Does the system maintain separate financial records for each company or department that operates within a company?
• Does the system have the ability to communicate with other computer systems, such as those used for making payments online?
• Does the software, which is commonly known as a Customer Relationship Manager system, preserve in-depth records on clients, such as the items they purchase, the frequency with which they do so, and the dates on which they do so?

Options For Free And Paid Software

There are a number of software packages available on the market that provide business managers with the ability to successfully control records even if they do not have a degree in accounting. In addition, some of them are free, such as Free Accounting Software.

The following are some examples of accounting systems that are frequently used by small businesses:

• MYOB
• QuickBooks
• Reckon One
• Sage
• Xero
• Cashflow Manager
• Saasu
• Rounded.
• Software for Single Touch Payroll

Businesses with fewer than 19 employees will be obliged to send tax and superannuation information directly to the ATO beginning July 1, 2019. (larger employers with 20 or more employees began reporting requirements earlier). The term for this practise is "Single Touch Payroll" (STP).

If you are already using accounting software, you should be able to find STP reporting already integrated into it.

You can identify software packages that allow STP reporting, including options that are affordable for micro employers, with the assistance of the software solutions page on the ATO website.

How to Pick a Bookkeeping Program

Once upon a time, bookkeepers wrote the information they needed to keep track of using a pen and paper, and they kept a company's accounts in ledgers that were specifically built for that purpose. Such archaic methods of bookkeeping have been rendered obsolete by the widespread adoption of computers. In point of fact, there are a number of software platforms that have been developed expressly for the goal of doing this task.

You will need to give careful consideration to a number of essential aspects before settling on the accounting programme that will work best for your company. You may select a software system for your company that will serve it well for years to come if you give it some careful thought right now. Now that we have that out of the way, let's move on to the more crucial considerations.

A brief remark: the terms "accounting software" and "bookkeeping software" are frequently used interchangeably by the general public. It is reasonable to use the terms "bookkeeping tools" and "accounting tools" interchangeably because the majority of software systems that are used for bookkeeping also include accounting tools. Nevertheless, the two fields of study are distinct in and of themselves.

Effortless Use

Time to Study

Certain software packages are more user-friendly than others, despite the fact that learning how to use any piece of software will take some time. Choose a platform that is not only user-friendly but also provides support in the form of tutorials, guidelines, and live assistance if the individual who will be operating the system is inexperienced in bookkeeping. If you are fortunate enough to have an experienced bookkeeper working for you, you should give some thought to selecting a tool that the bookkeeper is already acquainted with. Because of this, implementation headaches are reduced.

Accessibility

Accessibility also has a significant role in overall usability. Cloud-based bookkeeping software enables users to log in from virtually any Internet-connected device. In point of fact, the majority of cloud-based platforms are equipped with applications that grant access to your books via mobile devices. On the other hand, desktop bookkeeping software can only be accessed using the computer on which it was installed, thus it is not possible to access it remotely.

Permissions

There are several different bookkeeping software packages available, and some of them restrict the number of users who can view your records. Check to see if the bookkeeping software you're contemplating can let your different offices or outside financial advisors set up their own accounts. This is especially important if you have a large company.

Accounting Software Functions and Features

The size of your company, the kinds of goods or services that you sell, and whether or not you choose to handle the processing of your financial transactions in-house or outsource it to a third party are all factors that will determine which elements of your accounting software you require. Invoices and costs are two examples of the kind of basic transactions that are supported by every reasonable bookkeeping tool.

The following is a list of some of the more advanced capabilities that your bookkeeping software might need to have:

• Payroll. If you have staff members, someone needs to be responsible for managing the payroll processing. If you decide to delegate the management of your payroll to your bookkeeper, you will require an accounting solution that offers comprehensive payroll capability. A further choice is to outsource the management of payroll to a third-party application, such as Gusto, that is compatible with the accounting software that you use. This way, all of your information will be stored in the same location.
• Inventory. Companies that deal in tangible goods will undoubtedly require some sort of system to keep track of and administer their inventory. Choosing a bookkeeping platform that already includes support for inventory management would be the best approach to accomplish this goal.
• Subscriptions. A significant number of service providers, notably software as a service (SaaS) companies, market their offerings via subscription. Such businesses will unquestionably want a bookkeeping system that facilitates straightforward subscription administration. For instance, you will want a platform that will automatically produce invoices for your subscribers on a monthly basis with the least amount of participation from a human being that is necessary.
• Sales tax. Even if you just sell in a single jurisdiction, the process of establishing, collecting, tracking, and paying sales tax can be extremely onerous. An effective sales tax management system is an absolute necessity for any business that operates in more than one state, which encompasses virtually every online retail business. It is highly likely that a standalone sales tax software solution will be required for an e-commerce business of significant scale. Make sure, however, that the accounting software you use can be integrated with the programme in question. Businesses who have less complicated sales tax issues may be able to get by with merely bookkeeping software if the software includes a sufficiently comprehensive built-in sales tax management system. This is especially true if the programme was designed specifically for businesses.

Scalability

Changing from one method of bookkeeping to another can be a logistical nightmare for many businesses. Because of this, it is essential to select an accounting programme that will serve the needs of your company both now and in the foreseeable future. First, you should consider your goals, and then you should select what features you require from your bookkeeping software so that it can help you achieve those goals.

For instance, if you intend to create offices in a number of different states, you will need a bookkeeping software platform that supports multi-state payroll and provides access for a sufficient number of users to cater to each of your locations.

The majority of the better bookkeeping software packages are available in multiple variants, each of which is based on the same core software application. You won't have any trouble keeping up with the expansion of your company thanks to the straightforward and simple upgradability of the accounting software you use. The wonderful thing about this method is that you won't have to pay for any of the things that you aren't going to make use of. However, if you ever find that you require more advanced functions, installing them is a breeze.

Compatibility

If you didn't start your company the day before yesterday, chances are good that you already have a system in place to manage your company's finances. You most likely have one or more company bank accounts, as well as loans, credit cards, and possibly even a certified public accountant (CPA), even if the only time you interact with them is around tax season.

It is essential to select accounting software that will interface easily with the other software and hardware that you already have in place. This is of utmost significance if you already work with a certified public accountant (CPA) or another type of financial counsellor and wish to continue doing so. You will make your life much simpler if you select a tool for bookkeeping that corresponds to whatever they are using in their own office (or at the very least is anything that they are acquainted with).

In addition to this, you will need to think about what it will take to instal the new software solution. There are some outstanding bookkeeping software solutions available; however, in order to get them up and running, you will need to have a high level of technical expertise. If you do not have a person who is solely responsible for IT, you will need to hire someone to get it set up.

In addition, if you run into any technological issues in the future, you will need to hire an expert to assist you in resolving those issues. On the other hand, if you already have someone on your IT staff who is experienced with that intricate software, it might be a good option for you to go in that direction.

Price

Your search for bookkeeping software has probably been limited down to just a few different alternatives by the time you have finished looking through all of the aspects that have been discussed above.

At this stage, it's time to start thinking about what kinds of things your budget can accommodate include. In general, the higher the level of specialisation of the programme and the more extensive the feature set, the higher the price that you can anticipate paying for the bookkeeping software. It is possible that you will wind up needing to make concessions on key features in order to maintain a reasonable price for your product.

For instance, you may be interested in purchasing the most effective inventory management software on the market, but discover that the accounting software that offers the highest level of inventory management assistance is priced beyond your financial means. In that scenario, you should investigate whether there are any alternative options available. There are a variety of bookkeeping software programmes that are compatible with a wide variety of third-party applications. It's possible that you'd be better off selecting a bookkeeping programme that doesn't have very good inventory management but that interacts with a good inventory management app.

Alternative Approach

Think carefully about whether investing your hard-earned money in an bookkeeping software system that you intend to handle on your own will be the most beneficial use of that money before you go ahead and make that investment. If you want to avoid the trouble of establishing and maintaining your own bookkeeping system, hiring Pilot to manage your bookkeeping may be the best option for you.

When it comes to managing our clients' books, it relies on the tried-and-true software solution QuickBooks Online. When you combine that with the fact that you will be assigned a personal account manager, you get the best of both worlds.

You won't have to stress about handling the books on your own or searching for and hiring a bookkeeper to work in-house because you'll have access to both a powerful bookkeeping software system and an outstanding bookkeeper through a single, straightforward service.